Recognize the symptoms of an out-of-sync ERP and find ROI
Posted by Linda Nist-Gudeman on Tue, Oct 27, 2009 @ 09:25 AM
Dynamic ERP, Dynamic ROI
If your supply chain business were a static entity, the ERP you implemented in previous years would still work perfectly fine, meeting your needs as well as the day you went live with it. Your WMS would still suit your situation nicely, your EDI and ERP would continue giving you all the business integration and business intelligence a savvy business exec could want.
But your business isn't static, it's dynamic.
The economy rises and falls causing restructuring then repositioning; you add new products and delete others; you add clients who, in turn, add new requirements about how to deliver not just the goods but the data associated with them; new suppliers, new compliance standards, and an ever-changing marketplace all conspire. Soon, your ERP and the affiliated component applications, fall out of sync with the business they support.
A clear view of a fuzzy object
Recognizing the symptoms of an out-of-sync ERP is easy:
• Costs are rising and containment efforts aren't keeping up
• Your IT ROI is flat or shrinking
• Your customers are hinting (or demanding) you be more responsive to their needs
• Fragmented data pools are costing you time and money
• There are growth opportunities on the horizon but you can't see beyond the next bend in the road with the ERP you have now
The hard part is making the right decisions to realign your ERP with the business you're running today and the one you anticipate running next month and six or 60 months down the road.
Avoid common mistakes
The most common mistakes we see companies making while grappling with large-scale ERP issues are:
Mistake #1 Implementing manual solutions
Result Data becomes even more fragmented and less integrated, resulting in less effective decision making.
Mistake #2 Customizing
Result Customizing is not only costly, but it digs you even deeper into an IT hole, reducing the number of options available to you in the future.
Mistake #3 Doing nothing
Result You end up throwing other resources and money at the problem, all while falling further out-of-sync with your business.
The opportunity for reducing costs from rethinking your ERP system warrants further return on investment investigation now rather than putting your ERP project on hold.
Consider the possibilities of better inventory accuracy, expanded sales channels, dashboards displaying real-time data, integration for ease of use, being more responsive to demand, being able to direct your employee's time to more productive projects. The list goes on; see our Innovation Guide to learn more.
Ask the right questions, get the right answers
Sometimes, you need to upgrade. Sometimes you need to implement a new system. Sometimes, just a few simple tools will keep your operation running smoothly for years.
Developed from our 30-plus years of experience, our Business Computing Assessment asks pointed questions designed to help you maximize the business integration and business intelligence you realize from your ERP and WMS, integrating your data and your business, and achieving the best possible ROI for every dollar invested in your IT infrastructure today and in the future. Couple the assessment with an ROI calculation using your numbers to help you make the right decision now to realize the cost reduction possibilities from an optimized ERP system.
HowToInnovate HowToImplement Free Kits includes innovation guides, business computing assessment, attend a virtual seminar and get an ROI calculation bonus!